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Hallyuwood
Korean star Cha Eun-woo apologizes anew, says he paid all back taxes
Korean star Cha Eun-woo apologizes anew, says he paid all back taxes
Korean star Cha Eun-woo, 29, actor and a member of K-pop boy band ASTRO, has issued another apology and revealed that he paid all back taxes to the government.
Cha Eun-woo was facing a tax surcharge of 20 billion won (about $13.6 million) from the National Tax Service (NTS), South Korea’s equivalent of the Philippines’ Bureau of Internal Revenue (BIR).
The tax evasion allegations reported by Korean media stemmed from a corporation that was set up by his mother. Cha Eun-woo is under contract with agency Fantagio.
Meanwhile, the Korea Taxpayers Association (KTA) has filed a complaint with the Korean National Police Agency's National Investigation Headquarters last Feb. 10 against an unnamed NTS official who leaked the tax information about Cha Eun-woo and a journalist who first reported it on charges of violating the Personal Information Protection Act and disclosing official secrets under the Criminal Act.
Cha Eun-woo is currently fulfilling his military service and will be discharged on Jan. 27 next year.
In an Instagram post on April 8, Cha Eun-woo wrote, “I sincerely apologize for causing disappointment and confusion to many people, including my fans, due to the recent tax controversy involving me.”
“I apologize once again for the delay in speaking out, as I had no choice but to be cautious while various administrative procedures were underway. Although it is late, I would like to express my thoughts and position directly once again,” he said.
Cha Eun-woo revealed that he has paid all the taxes.
“I respect the procedures and results of the National Tax Service, and to prevent further confusion, I have paid all relevant taxes.I will faithfully participate in the remaining procedures as well,” he said.
The star said, “As I have been active amidst the love and support of many, I am taking this matter with even greater gravity and depth.”
Cha Eun-woo said he alone is responsible for any lapses.
“If there were any aspects I failed to review sufficiently, the responsibility lies entirely with me. I will not evade responsibility for any reason by claiming I ‘didn't know’ or that it was ‘someone else's judgment,’” he said.
He said the corporation was set up primarily to ensure the stability of his career.
“I established a corporation to ensure the stability of my activities during a time of various changes and confusion. However, looking back now, there were aspects I failed to oversee sufficiently during that process, and I believe the responsibility lies with me, not with my family or the company,” he said.
He said, “Through this incident, I have keenly felt the need to reflect on myself. Above all, I am most heartbroken and apologetic that I have disappointed my fans, the AROHA, who have trusted me.”
“To ensure that the same problem does not recur, I will review all aspects of my future activities with greater caution and stricter standards. I will strive even harder to become a Cha Eun-woo who takes full responsibility for my choices and actions to the very end. I once again offer my deepest apologies,” he said.
Tax leak complaint
On the other hand, KTA Chairman Kim Seon-taek appeared before the police last month as a complainant in the case the group filed.
In his statement as the complainant, Kim asserted , “The victim of this tax information leak incident is not limited to Cha Eun-woo personally. Since public trust in the ‘confidentiality of tax information’ guaranteed by the Basic Tax Act has been damaged, virtually the entire nation is a victim.”
He pointed to the reward system for tax officials as the background for the leakage of tax information .
The KTA said the Framework Act on National Taxes stipulates that tax officials be paid rewards within the range of 10 percent of their collection performance, with a maximum limit of 20 million won.
It explained that since the amount of back taxes collected by the Seoul Regional Tax Office Investigation Division 4, which investigated Mr. Cha Eun-woo, is known to be around 20 billion won, it corresponds to two billion won based on the criteria for calculating the reward, but according to the statutory limit regulations, a maximum of 20 million won may be paid .
“Twenty million won is an amount equivalent to the annual salary of a Grade 9 civil servant. If such a reward system undermines the fairness and objectivity of taxation and is highly likely to be abused, the reward system should be abolished,” the KTA said.
“The police must conduct a thorough investigation to ensure that tax information is never again leaked to the outside and that individual human rights are violated,” said Kim.